The Hershey Company
Student name
Southern New Hampshire University
ECO-201
March 16, 2015
The Hershey Company
Did you know the number one flavor in confectionery treats among Americans is chocolate? And the demand for chocolate in the global market is expected to have an “annual growth rate approaching 3 percent with Asia being the major source in growth sales, and is expected to rise to a 20 percent share in the global market by 2016” (Bradford, n.d.). As a consultant for one of the “top ten global confectionery companies” (The Chocolate Industry, 2015) in the industry, it’s essential that the core microeconomic principles be examined to ensure the firms sustainability and future growth in the market. As the demand for chocolate grows so does the demand for cocoa; the key ingredient needed to make chocolate. The cocoa farming industry is struggling to keep up with the rising demand primarily due to the lack of resources and monetary earnings by “small-scale family farmers who grow 90% of the worlds cocoa” (Goodyear, n.d.). As a result, many farmers are leaving the industry for higher paying work. This is a pressing issue for the chocolate industry as there is high probability that the company will not be able to sustain future growth in the market if the key ingredient is no longer available. Hershey will need to support and invest in the cocoa farming industry if they want to continue in the chocolate confectionery market.
History
As the founder of the Hershey Chocolate Company, Milton S. Hershey faced several challenges prior to becoming one of the most successful entrepreneurs around the world. He was born in Derry Township, Pennsylvania. And as a teenager with no formal education, he chose to enter a four-year apprenticeship program with a candy maker located in Lancaster, Pennsylvania. In 1876, after completing the apprenticeship program, he opened his own candy business that in the end failed after six years of...